How Companies Are Mitigating Tariff Impacts to Their China Operations
This report explores the latest comprehensive data available on exports of both US goods (2024) and services (2023) to China as well as the American jobs they support. This data does not reflect US and Chinese tariff increases enacted so far in 2025, which are expected to significantly reduce US exports if they remain in place.
China remained the United States’ third-largest goods export market in 2024 and sixth-largest services export market in 2023. Trade with China in areas like agriculture, education, travel, aerospace, and more supports hundreds of thousands of American jobs.
Recent US tariff increases have prompted Chinese retaliatory tariffs, including a 125% baseline duty on all US goods and additional product-specific tariffs ranging from 10% to 15%. Businesses and communities in the Midwest and South are the most exposed to these product-specific retaliatory tariffs on US goods.
Stunted economic growth and consumer demand in China, shifting import patterns in China, and trade barriers, such as tariffs, continue to weigh on bilateral trade.
While semiconductor and aerospace exports saw sizable expansions in 2024, these were not enough to make up for contractions in exports of oilseeds and grains and oil and gas.
Spending by Chinese travelers in the United States increased by 272.3%, though this is still less than half of the pre-pandemic level. The number of jobs supported by travel exports to China similarly rose to 58,020, an increase over 2022 but well below the nearly 130,000 jobs supported by Chinese travelers before the pandemic. Education spending by Chinese students and their families made strides toward recovery, almost reaching pre-pandemic levels. However, the number of Chinese students studying in the United States continues to decline.
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